Epple v Stone

The dispute in *Epple v Stone* concerned the construction of a will and the nature of a gift of income made to two beneficiaries. The matter came before the High Court of Australia, comprising Griffith C.J., Barton and O'Connor JJ.

The primary legal issue before the Court was to determine the nature of the beneficiaries' interests in the income generated by the corpus of the estate. Specifically, the Court had to ascertain whether the beneficiaries held the income as joint tenants or as tenants in common, given the wording of the gift which provided for income "in equal shares during their respective lives and the life of the survivor".

The Court reasoned that the phrase "in equal shares" was a clear indication that the beneficiaries were intended to take the income as tenants in common, rather than as joint tenants. This interpretation was reinforced by the subsequent gift over of the corpus to their children per stirpes, which further suggested a division of interests rather than a unified one. The Court held that the beneficiaries were entitled to the income as tenants in common during their respective lives and the life of the survivor.